The Rendell administration on Tuesday laid out where it plans to cut $212 million from the 2010-11 state budget. That, along with a projected $70 million in revenue from a yet-to-be-enacted Marcellus Shale gas severance tax, will bridge a revenue shortfall.
The U.S. House of Representatives voted 247-161 on Tuesday to provide $26 billion in additional federal assistance to the states. For Pennsylvania, that means $600 million in additional FMAP funds and $388 million in funding to keep teachers in the classroom.
The 2010-11 state budget relies on $850 million in enhanced federal FMAP funding for public health and human services that is in jeopardy. View Congressional district fact sheets detailing the impact of FMAP and the critical health services it funds on the lives of Pennsylvanians.
Lawmakers avoided a prolonged fight over spending and taxes, but they also missed an opportunity to raise recurring revenue to put Pennsylvania on surer fiscal footing. PBPC has a full analysis of the 2010-11 budget plan signed into law on July 6.
Last week, the U.S. House of Representatives approved a jobs bill after stripping out a six-month extension of federal assistance to states for health care costs. Learn more and take action to prevent deep cuts to health and human services.